HMRC revises tax rules for double cab pick-ups

HM Revenue & Customs (HMRC) has updated its stance on the tax treatment of double cab pick-up trucks, shedding new light on which vehicles will be impacted by the Government’s decision to reclassify them as company cars. 

While the changes were initially announced last year, this latest clarification refines the criteria for vehicles falling under the new tax regime, potentially affecting more businesses than originally expected. 

A reminder of what is changing 

Until now, double cab pick-ups have enjoyed tax treatment as commercial vans, making them a cost-effective choice for businesses thanks to lower Benefit-in-Kind (BiK) rates and favourable capital allowances. 

From April 2025, however, most will be classified as company cars, bringing with it a heavier tax burden: 

• From 6 April 2025 – Reclassified for Income Tax purposes 

• From 1 April 2025 – Reclassified for Corporation Tax purposes 

This change will affect capital allowances, BiK tax calculations, and certain business expense deductions. 

How HMRC has clarified the rules 

HMRC’s latest update slightly redefines what qualifies as a double cab pick-up for tax purposes, specifying that: 

• The vehicle must have four doors, though these do not need to be independently opening. 

• Two-door models will generally still be treated as vans. 

As a result, variations such as extended, extra, king, or super cab models will now fall within the scope of company car taxation. 

What happens if you already own a double cab pick-up? 

For businesses that acquire, lease, or place an order for a double cab pick-up before April 2025, the current tax treatment will remain in place, though only until the earlier of the following: 

• The vehicle is sold 

• The lease expires 

• 5 April 2029 

Capital allowances will also continue under the existing framework for those purchasing before the deadline. 

What should businesses do now? 

For many companies, double cab pick-ups serve both commercial and personal purposes.  

This reclassification could mean significantly higher tax costs, making early planning essential. Businesses should consider: 

• Reviewing vehicle policies to understand the financial implications for both employers and employees. 

• Exploring alternative vehicle options if cost is a concern. 

• Seeking professional tax advice to assess how capital allowances and deductions will be affected. 

If you need advice on how these changes will impact your business, speak to our tax specialists today.